Homeland Energy Group Ltd.

Homeland Energy Group Ltd.

December 31, 2007 15:19 ET

(Issued by Chrysalis for) Chrysalis Extends Offer to Acquire Homeland

TORONTO, ONTARIO--(Marketwire - Dec 31, 2007) - Chrysalis Capital IV Corporation (TSX VENTURE:CIV.P), ("Chrysalis") announced today that it has extended its offer (the "Offer") to acquire all of the issued and outstanding common shares (the "Homeland Common Shares") of Homeland Energy Corp. ("Homeland") held by certain qualified holders of Homeland Common Shares ("Homeland Shareholders") to 5:00 p.m. (Toronto time) on February 7, 2008. Previously, the Offer was set to expire at 5:00 p.m. (Toronto time) on December 31, 2007.

The Offer is made on the basis of one common share of Chrysalis ("Chrysalis Common Shares") for one Homeland Common Share. On or immediately prior to the closing of the Offer, the Chrysalis Common Shares will be consolidated by a ratio of 2:1 (the "Share Consolidation") and the Homeland Common Shares will be subdivided on a 4:1 basis.

As at December 28, 2007, 56.91% of the outstanding common shares of Homeland have been tendered to the Offer. The purpose of the extension is allow for TSX Venture Exchange approval of the previously announced proposed qualifying transaction with Homeland to be obtained and for articles amendment to be filed to give effect to the Share Consolidation. Chrysalis is also extending the Offer for a final opportunity for certain shareholders of Homeland to take advantage of this potential tax-deferral step in the merger process.

A Notice of Extension will be filed on SEDAR (www.sedar.com). The Notice of Extension will also be mailed to Homeland Shareholders.


Chrysalis Capital IV Corporation is The Chrysalis Capital Group's ("TCCG") fourth capital pool company ("CPC"). TCCG is focused on generating superior shareholder returns through the creation of a series of unique CPCs. To date, TCCG has created five Chrysalis branded CPCs and has assisted in the creation of two additional CPCs under TCCG's Partners Program. TCCG completed its most recent Qualifying Transaction (via Chrysalis Capital III Corporation) with U.S. Silver Corporation (TSXV: USA) on December 28, 2006. For more information about The Chrysalis Capital Group, please visit www.tccg.ca.


Homeland Energy Corp. is a private company focused on energy exploration and development in Southern Africa. Homeland owns three advanced development/predevelopment coal projects in South Africa and a number of early-stage exploration properties in the provinces of Mpumalanga and Kwa-Zulu Natal. The Company is currently negotiating to acquire interests in a number of additional coal properties in eastern South Africa and neighbouring countries. Homeland is a significant shareholder in Homeland Uranium Inc., a Canadian uranium exploration and development company focused on projects in Niger and the United States. For more information about Homeland, please visit www.homelandcorp.com.

This news release contains projections and other forward-looking statements regarding future events. Such statements are predictions, which may involve known and unknown risks, uncertainties and other factors, which could cause the actual events or results and objectives to differ materially from those expressed.

This Offer will be made only by the separate formal offer and takeover bid circular. This news release does not constitute an offer or solicitation in any jurisdiction. Any such offer or solicitation will be made only by formal offer and only in those jurisdictions where Chrysalis may legally do so.

Contact Information

  • Chrysalis Capital IV Corporation
    Marc Lavine
    Chairman and Chief Executive Officer
    T: (416) 352-5763

    Chrysalis Capital IV Corporation
    Robert Munro
    President and Chief Financial Officer
    (416) 352-5763
    Email: contact@tccg.ca
    Website: www.tccg.ca

    Homeland Energy Corp.
    Stephen Coates
    President and Chief Executive Officer
    011 44 20 7016 9881
    Email: Stephen.coates@homelandcorp.com
    Website: www.homelandcorp.com